Motion Industries to acquire Kaman Distribution Group
Genuine Parts Company announced that its wholly-owned subsidiary, Motion Industries Inc., will acquire Kaman Distribution Group from private investment firm Littlejohn & Co. LLC.
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The acquisition is valued at approximately $1.3 billion in cash. The transaction is expected to close in the first quarter of 2022.
The combined sales of Motion and KDG will exceed $7 billion.
"We are excited to announce this strategic investment in our Industrial business," said Paul Donahue, chairman and chief executive officer of GPC. "Motion's highly synergistic acquisition of KDG significantly enhances our scale and further strengthens our market-leading position. In addition, this combination creates opportunities for accelerated long-term growth, profitability and cash flow. Our Motion team, led by Randy Breaux, is eager to bring together the world-class talent and industrial expertise of these two organizations to build an even stronger business. We look forward to extending our leadership position and creating significant shareholder value together as a premier leader in industrial solutions."
Established in 1971 and based in Bloomfield, Connecticut, KDG is a power transmission, automation and fluid power industrial distributor and solutions provider with operations throughout the U.S., providing electro-mechanical products, bearings, power transmission, motion control and electrical and fluid power components to MRO and OEM customers. It operates under three segments: Kaman Industrial Technologies, Kaman Automation and Kaman Fluid Power. Littlejohn acquired KDG from Kaman Corporation in August 2019 for $700 million.
KDG is expected to generate approximately $1.1 billion of revenue in 2022.
"Motion is a nationally recognized brand and a market leader in industrial distribution. We are very pleased to combine our two great businesses and leverage our collective resources and expertise to accelerate profitable growth. We appreciate the exceptional efforts of our employees who make our company so great, and we are confident Motion is the natural partner for continued long-term success," said Ben Mondics, president and chief executive officer of KDG.
“We are proud to have supported KDG’s transformation into a leading industrial distribution platform," said Tony Miranda, a managing director at Littlejohn. "During our ownership, KDG successfully and seamlessly transitioned into an independent company, strengthened its leadership team by recruiting several experienced industry veterans, and refocused the organization on driving operational excellence and reinvigorating growth. It has been a great pleasure working with Ben Mondics and the KDG team, and we wish them continued success in partnership with Motion.”
INDUSTRIAL SUPPLY MAGAZINE
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